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I agree if the demand wasn't there the bikes would disappear, however the police crack down on other openly illegal activities such as fake DVDs, you often hear about boot sales being raided for this stuff, however, as you say it is much more difficult to identify stolen bikes....
Perhaps this is why this database register is a good idea. At least the police could check frame numbers and make the criminals a bit more uncomfortable. Might put people off too.
It would also be good to see some sort of public campaign about it, i.e. highlighting the legal implications to buyers of stolen property.
I guess at the end of the day this is low priority for the MET, what with all those terrorists about ;0)